[Market news] Vietnam is the largest banana supplier to the Chinese market

According to the China Customs Service, China’s banana imports in the first half of 2024 amounted to 957,000 tons and US$486 million, a decrease of 4.6% in quantity and 22.9% in value compared to the same period last year. In particular, China increased banana imports from the markets of Vietnam, Ecuador, Laos, Mexico, and Thailand, while reducing imports from the Philippines and Cambodia.

In the first half of this year, Vietnam was the largest supplier of bananas to the Chinese market. Vietnamese bananas exported to China amounted to 420,000 tonnes, an 18.5% increase over the same period last year and accounting for almost half of bananas imported into this market.

The amount of bananas imported from Vietnam is almost twice that of the Philippines (222,000 tons), and far exceeds that of Ecuador (123,000 tons), Cambodia (131,000 tons), Laos (49,000 tons), Mexico (7,000 tons), Thailand (more than 2,000 tons), Myanmar (more than 2,000 tons), and Indonesia (1,000 tons).

While China has increased its purchases of Vietnamese bananas, it has sharply reduced banana imports from the Philippines. The volume of Philippine bananas imported into China in the first half of this year decreased by 39.3% compared to the same period last year.

Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association (Vinafruit), said that compared to other banana exporting countries, Vietnam has a big advantage in terms of logistics when exporting bananas to China because it has a close border and can export by road. A recently under-construction trans-Vietnam highway system has helped shorten the time it takes to transport bananas to the Chinese border gate. Therefore, the time and cost of shipping Vietnamese bananas to China are currently much cheaper than other countries.

China is currently one of the world’s largest banana import markets. In 2023, China imported 1.77 million tons, or $1.08 billion worth of bananas, according to the China Chamber of Commerce’s Import and Export of Food, Native Products and Animal By-Products report. Among them, 686,000 tons of bananas were imported from the Philippines, 506,000 tons from Vietnam, 266,000 tons from Ecuador, and 263,000 tons from Cambodia. These four countries account for 97% of China’s total banana imports.

In terms of quantity, bananas are the most imported fruit in China, following durian (1.43 million tons) and coconut (1.18 million tons). In terms of sales, bananas rank fourth after fresh durians ($6.72 billion), cherries ($2.65 billion), and frozen durians (more than $1 billion).

On the Vietnamese side, according to data from the Vietnam Fruit and Vegetable Association, bananas will reach $220 million in the first six months of 2024, making it one of the three most valuable export fruit product groups (after durian and dragon fruit). This is an increase of more than 18% compared to the same period in 2023.

According to forecasts, Vietnam’s banana exports this year could reach around $400 million, a 20% increase compared to 2023. However, to maintain the top banana export position in the Chinese market, Vietnam must strictly control cultivation area, maintain stable quality and design, and especially prevent Panama disease from spreading on a large scale.

Source: https://cafef.vn/viet-nam-la-nuoc-cung-cap-chuoi-lon-nhat-cho-thi-truong-trung-quoc-188240902112442492.chn